Town amends procurement bylaw

The municipality has made an amendment to its procurement policy. The change came after a recommendation from councilor Patrick Adams that was presented at town council.

In a report to council Adams asked the bylaw be amended to “to require all soft costs be included and submitted with a Class D estimate before any funding can be provided for a capital project. This will provide a more accurate assessment of all construction costs associated with a project to allow better financial understanding and budget implications.”

Adams report explained that “Cost estimates for construction projects are defined as either being a Class A ,B ,C or D estimate. The=accuracy of each estimate varies from +/- 20% to 30% at a Class D estimate stage, to 5%- 10% accuracy with a Class A Estimate.

“A Class A estimate should be based on tender-ready documents, and include for all current market conditions, material price fluctuations, labour conditions, and current market trends.

“A Class B estimate is a construction document estimate based on working drawings and more detailed dimensioning from computer generated drawings and systems with preliminary plans for mechanical and electrical. Generally, such items as structural grid, element sizes, and weight are all determined.

“The outline specifications of all systems and materials are available.

“A Class C estimate is a schematic design development estimate, where the program is set; the consultants have provided plans, elevations, sections, and an approximate palette of materials, as well as a concept design to allow form and spaces.

“A Class D estimate is generally an estimate based on the initial functional program and broad concept approach. Usually by this time, the site and program have been approved. Initially, the owner may guess at the amount of budget available which figure may be low due to a lack of up-to-date cost advice. Then after initial design concepts, consultants prepare an order of magnitude estimate comprised of an elemental summary and based on a rough cost per square metre. This estimate should contain the following contingencies: design, pricing, bid, construction, escalation, and scope. This estimate usually forms the basis of an agreement between the owner and the consultant. A Class D Estimate is known to be +/- 20% to 30% accurate. The Treasury Board of Canada will not provide funding to any project that is at a Class D Estimate stage.

“The current bylaw requires Town Council approval for purchases over $100,000. A request for proposal or a request for tender is to be submitted. The supplier would still submit their bid as before, however, a third party or internal staff can include the excluded costs to provide a more accurate estimate.”

During the election campaign Adams’ platform was based off of fiscal responsibility. Speaking after the meeting and with a big smile on his face, he stated council’s decision to amend the bylaw meant one of his goals has been fulfilled.

“I am very happy with what council decided. It is really positive for the community. It will allow better communication to the public to the exact cost of what a project would be. It is just a better protection for the municipality and the taxpayers in the future.